China’s Manufacturing Crisis
China dominates manufacturing—so why are thousands of Chinese manufacturers going out of business?
By
August 25, 2024
Chinese manufacturers are grappling with overcapacity–the industry's production capacity exceeds the demand for its products.
As a result, thousands of Chinese manufacturers in critical domestic industries are going out of business, per The Economist.
- 52,000 EV-related industrial firms shut down in China last year
- ~11,000 chip-related firms went out of business in China last year
More trouble could be coming: In the first half of the year, about 30% of the 500,000 industrial firms surveyed by China’s National Bureau of Statistics were not profitable—the worst ever.
China is the world’s factory, accounting for 35% of global manufacturing gross production as of 2023, but they’re desperate for more orders.
